Anticipating the labor market challenges of the clean energy transition: Evidence from an iron ore mining ban

48 Pages Posted: 8 Dec 2023 Last revised: 29 May 2024

See all articles by Vikrant Kamble

Vikrant Kamble

Georgia Institute of Technology

Dylan Brewer

Georgia Institute of Technology - School of Economics

Date Written: March 12, 2024

Abstract

In 2011, the Supreme Court of India banned iron ore mining in three districts of Karnataka state to curb illegal mining practices. This decision had unintended consequences on the market for unskilled labor as displaced miners shifted to other fields, such as agriculture. In districts where mining was banned, male unskilled labor wages declined by 24\%, household consumption declined by about 20\%, and demand for guaranteed government work programs increased by about five percentage points. These findings have important implications for transitioning economies experiencing significant sectoral changes, such as a structural transformation or energy transition where more than half of the population still depends on the agricultural sector for employment.

Keywords: Mass layoffs, mining, natural resources, India, agriculture, labor supply

JEL Classification: O13, O15, J43, J63, Q12, Q32

Suggested Citation

Kamble, Vikrant and Brewer, Dylan, Anticipating the labor market challenges of the clean energy transition: Evidence from an iron ore mining ban (March 12, 2024). Available at SSRN: https://ssrn.com/abstract=4650793 or http://dx.doi.org/10.2139/ssrn.4650793

Vikrant Kamble

Georgia Institute of Technology ( email )

Dylan Brewer (Contact Author)

Georgia Institute of Technology - School of Economics ( email )

217 Habersham
Atlanta, GA 30332
United States

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